Lastminute.com to cut 350 jobs

Online travel firm lastminute

Online travel firm lastminute.com says it will cut around 350 jobs to lower costs by around 10 per cent in the 2005 financial year.

The Internet retailer also posted a 5 per cent rise in third-quarter core earnings on Thursday but said the outlook for the rest of its financial year remained challenging.

"It's been relatively obvious there is a lot of duplication due to the large amount of acquisitions we've made and to get all of our businesses onto single systems . . .  We've indicated about 350 job cuts," Chief Executive Brent Hoberman said.

Lastminute said earnings before interest, tax, depreciation, amortisation and exceptional items rose to £4.3 million sterling in the three months to the end of June from 4.1 million pounds the previous year.

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Total transaction value, or gross sales, rose 78.2 per cent to £268.9 million sterling, and its forward order book stood at £77 million, compared to £61.1 million the previous year.

Mr Hoberman said the quarter had been difficult for the travel industry, with holidaymakers booking their summer breaks later than usual as they waited for bargain deals.

The stock fell to its lowest level in more than a year on Wednesday after InterActiveCorp, owner of rival Expedia.com, cut its forecast for 2004. The shares closed 6 per cent down at 126 pence.